Rupee came under pressure in early trade on Thursday, slipping 7 paise to 95.40 against the US dollar amid elevated crude oil prices and geopolitical uncertainty. The currency opened at 95.40 at the interbank foreign exchange market, after closing the previous session at 95.33.Forex traders said that investor sentiments have remained fragile amid the ongoing standoff between the US and Iran. Iran has warned that the Strait of Hormuz could remain closed till 2029, while the US President has said that the Hormuz is in US’s command.The dollar index, which tracks the US currency against a basket of six currencies, stood at 100.01.Brent crude, the global oil benchmark, was trading 1.22% lower at $87.89 per barrel in futures trade.Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP, said rupee’s opening came as oil prices remained close to $88 a barrel and the dollar index stayed elevated at 100.01. “With oil prices near to $88 a barrel but the dollar index higher at 100.01, the rupee opened at 95.40 on Thursday, after rising to 95.25 on Wednesday,” Bhansali said.“RBI has been continuously backing the rupee at 95.41-95.45 despite oil demand taking it lower,” Bhansali said.Meanwhile on Wednesday, foreign institutional investors were net sellers in the equity market, offloading shares worth Rs 1,002.50 crore, according to exchange data. Dalal Street also traded lower in early deals. Sensex fell 152.97 points to 77,813.38, while Nifty declined 84.80 points to 24,351.15.
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